Forums › ACCA Forums › ACCA TX Taxation Forums › Q about assessable trading income
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- July 19, 2015 at 6:05 am #261086
Dear all,
My question concerns assessable trading income with accounting date in second year.
I am going to take the example 2.7 of BPP 2015-2016 study text Ch. 10, P.141.
Wilma starts to trade on 1 October 2014. She made taxable profits of £9’000 for the first nine months to 30 June 2015 and £30’000 for the year to 30 June 2016.
The taxable profits for the first three tax years are as follows:
Year Basis period Working Taxable profits
2014/15 1.10.14 – 5.4.15 £9’000×6/9 £6’000
2015/16 1.10.14 – 30.9.15 £9’000+£30000×3/12 £16’500
2016/17 1.7.15 – 30.6.16 £30’000Is she getting taxed on the same amount twice in this case (the £6’000 pro-rated amount earned between 1.10.14 and 5.4.15)? Or did I miss something?
Thank you in advance for your help.
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